Policy paper

Capital Gains Tax: denying Entrepreneurs’ Relief for disposals of goodwill to related companies

This Tax Information and Impact Note is about denying Entrepreneurs’ Relief (ER) for disposals of goodwill to related companies.

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This measure will mean that ER will not be available to reduce Capital Gains Tax on disposals of the reputation and customer relationships associated with a business (the ‘goodwill’) to a close company to which the seller is related.

This change is made alongside a measure to restrict Corporation Tax deductions when goodwill is acquired from a related party on incorporation.

A draft legislation for this measure has been published at Draft legislation: Capital Gains Tax - denying Entrepreneurs’ Relief for disposals of goodwill to related companies.

Published 3 December 2014